Tasmanians warn Abbott over Bass Strait

Tasmanians are warning that the state's economy would be devastated if Bass Strait subsidies are scrapped.

The federal government's commission of audit has recommended the freight and passenger schemes, which cost around $130 million per year, be abolished.

"The prospect of scrapping Bass Strait freight subsidies would devastate Tasmania's export industry and should be immediately rejected," Labor opposition leader Bryan Green said in a statement.

Independent MP Andrew Wilkie added his voice to warnings about the schemes, first implemented in 1976.

"They will effectively drive a stake through the heart of the Tasmanian tourist industry," he told ABC radio.

Liberal Premier Will Hodgman was yet to comment on the report, but a spokeswoman reiterated the Abbott government had not made a decision yet on any cuts.

"It's a report full of suggestions, not decisions," she said.

"We won't be commenting on speculation, other than to say we will always stand up for Tasmania's best interests."